Accounts

Regulatory Framework

100

Give the Abbreviation of the following

IASB

ISSB

IASC

International Accounting Standards Board (IASB)

International Accounting Standards Committee (IASC)

International Sustainability Standards Board (ISSB)

200

• The IASB is responsible for the standard setting process. Is this statement true or false?

Ans: True

300

• Which statement about users of accounting information is incorrect?

• Management is considered an internal user
• Taxing authorities are considered external users
• Present creditors are considered external users
• Regulatory authorities are considered internal users

Ans: 

• Regulatory authorities are considered internal users

400

List two principal objectives of the IFRS Foundation

Ans: promote the use and rigorous application of those standards

Develop a set of high quality, understanable, enforceable and globally accepted financial reporting standards.

500

What is the goal of the IFRS?

The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements.

Forms of Business Ownership

100

Owned by one person

Ans: Sole Porprietorship

200

• Owned by at least two individuals
• Jointly responsible for loss
• Profits are shared

these are characteristics of which business ownership

Ans: Partnership

300

• If a business is run by Liam, Logan and Larry. What type of business is this an example of:

Ans: Partnership

400

List 3 Advantages of Sole Traders

Ans: 

Simple to establish and owner controlled.

Less stringent statutory and reporting regulations

Owner entitled to profits and the ownership of assets

Can be highly flexible

Characteristics of Accounting

100

What are the fundamental characteristics of Accounting?

Ans: Relevance & Faithful Representation

200

List the 6 Qualitive Characteristics of useful financial information.

Ans: Relevance

Faithful Representation

timeliness

Comparability

Understandability

Verifiability